Adx di indicator for catching the momentum

Adx directional index indicator for catching the momentum

So most trading platforms actually have two different versions of the ADX indicator, which is where many people get confused when adding it to their charts. The first version of this indicator only has only one line on it, which is the ADX line itself. This version of the indicator can usually be found by simply clicking on “add indicator” and then searching for ADX.

The second version of this indicator has 3 lines, which are the ADX line, the Positive Directional Indicator (which can be abbreviated to +DI), and the Negative Directional Indicator (which can be abbreviated to -DI). Now to get this version of the indicator on your charts, you can usually find it by simply searching for “DMI”, and then clicking on the result labelled “Directional Movement Index.” Each charting platform will do things slightly differently, but you should be able to find the correct indicator by searching for these terms. Let’s start off by explaining how the ADX line works, and then we’ll throw in the two Directional Indicators.

So ADX stands for Average Directional Movement Index. This indicator is commonly used to measure the strength of a trend in the market, and to determine whether there is a trend present or not. Now, it’s important to remember that the ADX is a non-directional indicator. This means that when there is a strong uptrend on the charts and price is rising, you will see the ADX line also rising. But here’s the tricky part: When there is a strong downtrend on the charts and price is falling, the ADX line will once again be rising.

This is what I mean when I say the ADX is a non-directional indicator. The job of the ADX line is NOT to measure the direction of a trend; it’s ONLY job is to measure the STRENGTH of a trend. So whether we’re currently in a strong uptrend, or a strong downtrend, the ADX line will slope upwards to indicate that we’re in a strong trend, regardless of which direction price is moving.